THIRD QUARTER REPORT Period Ended September 30, 2008 Management’s Discussion and Analysis and Unaudited Consolidated Financial Statements THOMSON REUTERS MANAGEMENT’S DISCUSSION AND ANALYSIS The following management’s discussion and analysis is intended to assist you in understanding and evaluating changes in our financial condition and operations for the three-month and nine-month periods ended September 30, 2008, compared to the same periods in the preceding year. We recommend that you read this management’s discussion and analysis in conjunction with our consolidated financial statements for each of the three-month and nine-month periods ended September 30, 2008 and the year ended December 31, 2007, the related notes to those financial statements, and our management’s discussion and analysis for the year ended December 31, 2007. Our financial statements are prepared in accordance with accounting principles generally accepted in Canada, or Canadian GAAP. References in this discussion to ‘‘$’’ and ‘‘US$’’ are to U.S. dollars, references to ‘‘C$’’ are to Canadian dollars, references to ‘‘£’’ are to British pounds sterling, references to ‘‘d’’ are to the Euro and references to ‘‘¥’’ are to the Japanese yen. Unless otherwise indicated or the context otherwise requires, references in this discussion to ‘‘we,’’ ‘‘our,’’ ‘‘us’’ and ‘‘Thomson Reuters’’ are to Thomson Reuters Corporation, Thomson Reuters PLC and their respective subsidiaries which operate as a unified group under a dual listed company (DLC) structure. In addition to historical information, this management’s discussion and analysis contains forward-looking statements. Readers are cautioned that these forward- looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. Some of these factors include those identified in the section entitled ‘‘Cautionary Note Concerning Factors That May Affect Future Results’’ at the end of this management’s discussion and analysis and in the ‘‘Risk Factors’’ section of Thomson Reuters PLC’s annual report on Form 20-F for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. This management’s discussion and analysis is dated as of November 11, 2008. OVERVIEW On April 17, 2008, The Thomson Corporation (Thomson) acquired Reuters Group PLC (Reuters) and Thomson Reuters was formed. Thomson Reuters operates under a DLC structure, which means that we have two parent companies, both of which are publicly listed: • Thomson Reuters Corporation, an Ontario, Canada corporation, and • Thomson Reuters PLC, an English company. Thomson Reuters Corporation and Thomson Reuters PLC operate as a unified group pursuant to contractual arrangements as well as provisions in their organizational documents. Under the DLC structure, shareholders of Thomson Reuters Corporation and Thomson Reuters PLC both have a stake in Thomson Reuters, with cash dividend, capital distribution and voting rights that are comparable to the rights they would have if they were holding shares in one company carrying on the Thomson Reuters business. The boards of the two parent companies comprise the same individuals, as do the companies’ executive management teams. Our Business, Strategy and Operating Environment What Thomson Reuters does — We are the world’s leading source of intelligent information for businesses and professionals. We define intelligent information as information that organizes itself, suggests connections and fits into professionals’ workflows. We combine industry expertise with innovative technology to deliver critical information to decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world’s most trusted news organization, Reuters. We believe that our intelligent information provides our customers with a competitive advantage by enabling them to make better decisions faster. How Thomson Reuters makes money — We generate revenues by supplying knowledge workers with business-critical information solutions and services. We make our information more valuable by adding expert analysis, insight and commentary, and couple it with software tools and applications that our customers can use to search, compare, synthesize and communicate the information. To further enhance our customers’ workflows, we deliver information and services electronically, integrate our solutions with our customers’ own data and tailor the delivery of information to meet specific customer needs. As we integrate critical information with analysis, tools and applications, we place greater focus on the way our customers use our content, instead of simply selling the content itself and are moving from just informing our customers to enabling their decisions. We believe our ability to embed our solutions into customers’ workflows is a significant competitive advantage as it leads to strong customer retention. Thomson Reuters operational structure — Thomson Reuters manages its operations through its two divisions: • Markets, which consists of our financial businesses, which are a combination of those operated by Reuters and Thomson Financial prior to the closing of the acquisition; and • Professional, which consists of our Legal, Tax & Accounting, Scientific and Healthcare segments. 1 The reportable segments of Thomson Reuters are Markets, Legal, Tax & Accounting, Scientific and Healthcare, as well as a Corporate and Other category. The Corporate and Other category principally includes corporate expenses, certain costs associated with stock-related compensation, fair value adjustments associated with foreign currency embedded derivatives of customer contracts, costs associated with corporate integration and synergy programs and costs associated with the Reuters acquisition. Business environment and trends — As a global organization, we are affected by economic and market dynamics, governmental regulations and business conditions of each market and country in which we operate. In recent months, global markets have been negatively impacted by a variety of factors, and the financial services industry in particular has been adversely affected by losses in the mortgage and credit markets. While we are not immune to economic cycles, the professional markets that we serve have historically been more resilient than the financial markets that we serve. Further, over the last few years, our business has increasingly become more subscription-based with a greater number of customers entering into multi-year commitments for our critical workflow tools and applications. We believe these factors will help mitigate the impact of the recent downturn in global markets relative to our positioning in previous downturns. Despite volatile world financial markets and weakness in the global economy, our Markets Division continued to perform well in the third quarter of 2008 due to its diversity of customers, global presence and breadth of offerings. As a consequence of consolidation and retrenchment within the financial industry, we experienced some customer losses, particularly investment banks directly impacted by the credit markets. However, these customer losses represented a small fraction of our overall customer base. Geographically, impacts on the industries that our Markets Division serves have not been uniform. We have experienced higher growth in our Markets Division revenues from Asia and the Middle East, as compared to other areas of the world, due to relatively stronger macroeconomic conditions and a growing need for a more established information services infrastructure. With respect to our various product offerings, the continued growth in those related to foreign exchange, commodities and energy and services for corporations more than offset the impact from weakness in investment banking. Further, we experienced higher transaction revenues in the third quarter of 2008 as volatility in financial markets led to higher trading volumes. Our Professional Division also performed well in the third quarter of 2008. Our legal business has expanded its online offerings and client development and consulting services, offsetting softening in ancillary revenue and sales in the government and small law firm segments. Even though law firms are tightening their cost structures following slowdowns in various practice areas, we believe that a consequence of the global financial crisis could be increases in traditionally countercyclical work such as litigation, bankruptcies, restructurings and regulation. Similarly, we believe our Tax and Accounting segment is well positioned to help professionals stay apprised of U.S. tax code changes and new regulations which are expected from a new U.S. presidential administration. Because the focus on cost and efficiency is heightened in the current environment, we believe we are equally well positioned in the Healthcare segment, where we deliver solutions to provide transparency and analysis into healthcare spending. We believe that the global reach of our Scientific segment, and particularly our presence in markets like Asia, could help mitigate weaker markets in the United States and Europe. Our results through September 30, 2008 demonstrate the strength, breadth and balance of our company. We are benefiting from our business model which focuses on achieving leading positions in key professional markets, seeking profitable growth in emerging